Warsaw bourse and złoty feel first effects of China crisis
PR dla Zagranicy
Jo Harper
25.08.2015 07:40
Shares fell sharply on the Warsaw Stock Exchange on Monday as the first effects of the emerging crisis in China made its way to Europe.
Photo: Wikimedia Commons
In the afternoon the WIG20 was down 5.5 percent , the WIG40 down 5.8 percent and the WIG80 down by 6.3 percent.
One of Poland's worst hit companies was KGHM, down 12.76 percent, at one point down 16 percent. The firm is one of the world’s leading copper producers, and with the Chinese economy slowing, demand and hence also prices for copper, amongst other commodities, is falling. The coal miner Bogdanka fell 29 percent.
The Polish złoty also fell several percent against the euro to 4.23.
The benchmark Shanghai Composite was down 4 percent at midday on Tuesday, after dropping 8.5 percent on what state media called "Black Monday." Overnight, stocks in Europe and the US also fell. The Nikkei index was down 4.62 percent.
Chinese stocks saw their worst fall since 2007 causing market losses around the world. The global sell-off was driven by fears that China's slowing growth might drag other economies down. (jh/rk)